NDIC BOARD VISITS MALAYSIA DEPOSIT INSURANCE CORPORATION AND BANK NEGARA MALAYSIA
PRESS RELEASE
As part of its programmes of visiting other jurisdictions to share experiences and exchange ideas, the Board and Management of the Corporation visited Malaysia Deposit Insurance Corporation (MDIC) and Bank Negara Malaysia (BNM) from 21st to 25th June, 2010. During the visit ideas and information on the development of Islamic banking in Malaysia, issues in banking supervision in general and Islamic finance institutions were exchanged.
During the course the visit, the Board and Management were engaged in discussions on the MDIC’s Board role and responsibilities, governance structures, practices and standards, relationship between Board and Management, code of ethics and Behaviour and the relationship with Bank Negara Malaysia at the Board and Management Level. Similarly, Corporate Planning & Strategic Direction, Enterprise Risk Management and internal Control and the Role of the Board of Directors were also discussed. Other important topical issues discussed during the visit included an overview of MDIC’s key deposit insurance features; MDIC’s Islamic Deposit Insurance Framework; Compliance with Shariah principles; Current developments in Islamic Deposit Insurance (DI); effect of financial crisis on MDIC and strategies for strengthening MDIC and the BNM’s framework for regulating and supervising Islamic Banks.
All the topics presented were discussed and assessed with the objective of sharing experiences with a view to improving the Corporation’s operations. It was expected that experiences shared as well as comments from both sides would result in the improvement of the operations of the Corporation in line with best practices.
The Board used the opportunity to seek for assistance and further collaboration with MDIC especially in areas of Islamic Deposit Insurance, Enterprise Risk Management, Consolidated Supervision, Risk Based Supervision and Corporate Governance. Part of the collaboration was the sending of five staff of the Corporation on a study visit to the Malaysia Deposit Insurance Corporation (MDIC) on Islamic Deposit Insurance and Islamic Banking from 12-16 July 2010.